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KA
Investor mindset Trader I personal finance | Index Investor | since 2008 |

Mar 18, 2020, 12 tweets

few super-duper traders who when get right often seen these days mocking investors, warren buffet quotes
I will say in stock market both have their time.. some times traders feel investors are dumb, sometimes investors feel traders are dumb
as both investor and trader I can say

yes, I m enjoying making money by shorting but at the same time, I can feel the pain of investors as my own portfolio is bleeding but this is a part of the game and a process through which everyone has to go.
at this time I remember quotes of warren buffet and few learnings----

a thread-
Let's start with Warren’s Quote "Unless you can watch your stock holding decline by 50 percent without becoming panic-stricken, you should not be in the stock market."

before going forward something for retail-
1) We have talked about this quite often “ 5 ways Sure Shot ways to loose money in
Stock Market” “Barbaad hone ke stock markets mein 5 tarikke hote hai”
a) Intraday Trading on Margin

b) Futures c) Options d) Currency e) Commodity (if not for hedging)

Some people might say that they had short positions and they made money in this fall(including me).
only comment would be, continue trading on leverage same way for few more months or years,

most probably you would understand-"barbad hone ke tarike"
(as a human being I know there will be days where I will become overconfident and commit some mistake and that mistake will be enough to wipe ac.. so in order to keep myself safe I keep 2 diff ac - trading/investing

I trade with 5 to 8% of my net cap at any adverse situation.
in this way I keep my trading keera calm and keep on practicing Technical analysis which is my passion and this i have been advising all my friends and followers)

2) Stock Markets are profitable only because they are uncertain.
You cannot predict where the bad news will come from but you can always be prepared for it. (yes bank/ oil price and coronavirus) atleast coronavirus was very
unpredictable.
so what it taught to investors?

I have been taught by my guru -
"prepare for the worst"
question comes how?
so it goes like this

a) Planning for goals within 5 years in debt. (Some of us get excited when the markets do well and start investing in the stock market even for short term goals.)

b) Planning for long term important life goals by SIP in Index. If you are SIPping for long term goals, generally lower levels of the index should make you happier, as
you can buy more units(so its good time for sip investors)

c) Monitoring, if goals have been achieved because of higher Index levels.
(Sometimes markets might go very high and even if you transfer your sip investments to debt funds you might be able to achieve your long term goals and

eliminate the volatility risk as your goals come closer)
d) Creating a separate wealth maximization account (Surplus money that is not required for say 10 years and not required for an important goal).
#investing
#trading
#wealthmanagement

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